The former Hazelwood mine site, now slated for rehabilitation. (Picture by Jason South)
The rehabilitation project in Victoria at Hazelwood lake is changing the future of mine closure in Australia. The energy company Engie has publicly released its complete Environmental Effects Statement (EES) proposal for consultation – a plan which intends to convert the former Hazelwood Coal Mine void into a large, 7 square km man-made lake.
Located in the Latrobe Valley, this innovative proposal offers a possible study in sustainable land-use after mining – offering an opportunity to foreground environmental and social restoration on the national agenda.
From Extraction to Restoration: A Historic Proposal
The first step of Hazelwood lake rehabilitation is a proposal to transform the 1,200 hectares of open-cut coal mine (which ceased operation in 2017) into an inland lake. Engie proposes to fill the mine void over an anticipated 10-15 years drawdown from the Latrobe River System.
- The proposed man-made lake can serve multiple purposes, such as: Stabilise the landform at the site
- Deter future environmental challenges, such as groundwater contamination / land subsidence
- Facilitate biodiversity/ecological health in the region.
The Environmental Effects Statement noted that between 400 and 600 gigalitres of water could be needed to fill the lake which is a lot, similar to the volume of Sydney Harbour.
Environmental and social issues
The Hazelwood Lake rehabilitation proposal covers a lot of ground. The EES contains 16 technical studies which examine issues relating to:
- Groundwater and surface water management;
- Air quality and dust;
- Cultural heritage and archaeology;
- Economic and Social Impacts for the Latrobe Valley.
Engie has undertaken hydrology modeling, and claims that the local water supply and downstream communities are not expected to experience negative impacts. Engie acknowledged that there would be an adaptive management response to ensure environmental performance can react to changes that occur based on real-time situations and community input.
Source: Engie
Community response: Mixed feelings of excitement and caution
Those in the Latrobe Valley community have been impacted by coal-fired energy production in this area for a long time and were excited but also cautiously approached it. For some people, a lake represents the prospect of changing how the Latrobe Valley can work, perhaps as a recreational or ecotourism site.
Public consultations eventually held in Morwell and neighbouring towns had the best attendance rates from both the locals and community and environment groups alike out of other project proposals. There was feedback provided from supporters, by detractors, the projects would have environmental, economic opportunities as well as the fact the site would be re-developed.
Detractors wanted to know who would oversee the official long-term maintenance plan. What a reliable water supply option might be, and what are the usage rights would be for future water access.
As to community engagement and transparency Engie has reiterated what local community engagement will involve, and has advised that feedback will influence the implementation.
Also Read: EACON NHL collaboration pushes boundaries of autonomous mining
The Larger Context: Hazelwood as a Model for the Future
As Australia accelerates the closure of ageing coal power assets, the Hazelwood lake rehabilitation stands out as a potential national benchmark. Rather than leaving a scar on the landscape, the initiative suggests a path forward where mine rehabilitation contributes positively to local ecosystems and economies.
If approved, Hazelwood could serve as a template for other large-scale mine closures, offering insight into how industrial sites can be safely and attractively reintegrated into the surrounding environment.
Timeline, Public Engagement and Next Steps
Formal feedback from the public can be made on the EES until 16 August 2025. This is a critical moment for the project as community consultation will heavily influence the outcome of the project. Following the submit period, hearings will take place in October, and the Victorian Government’s decision is expected by early 2026.
All stakeholders are encouraged to read the EES and take part in public meetings, and respond in formal planning processes.
Final Thoughts
The Hazelwood lake rehabilitation is about more than just mine closure, it is an evolution of a landscape, a project that is forward-looking and is motivated by environmental responsibility, public engagement and long-term thinking. If operationally realised, it will not only repurpose a former industry, but make the benchmark for how we return land to nature after it has been produced for energy.
In a country where mining continues to serve as a foundation for the economy, perhaps Hazelwood will be a case study on how industry and environment can co-exist – and evolve for the future generations.
